AID economic policy reform programs in Africa : a synthesis of findings from six evaluations

has assisted 19 African governments in restructuring their economies. This report presents case studies of the economic reform programs in six of these countries -- Mali, The Gambia, Senegal, Cameroon, Uganda, and Malawi. The report concludes that the programs were generally successful, though in most cases they took longer than expected and many objectives have not yet been fully achieved. Major findings are as follows. (1) The removal of price and market controls generally had an immediate and positive impact, despite the occasional reluctance of the private sector to take full advantage of new investment and marketing opportunities. (2) The elimination of subsidies and industrial protection spurred productive efficiency but required some painful adjustments for firms that had previously been protected. (3) Removal of import and export controls improved efficiency, but did not prevent government bureaucratic delays. (4) Elimination of monopolies held by state-owned enterprises opened markets and allowed the private sector to compete and deliver goods at a much lower cost. Constraints included linked markets (those still controlled by governments) and inadequate business infrastructure. (5) Tax reforms to improve economic incentives, as well as tax collection and civil service reforms, appear promising but results are uneven. (6) Programs to develop host country capacity for internal reform helped build long-term policy reform sustainability. (7) The programs required large analytical staff input from both A.I.D. and the host government. (8) Policy reform involves a highly complex set of political, economic, and social changes with winners and losers in both the public and private sectors. Lessons learned are detailed in conclusion.